This application relates generally to transaction instruments.
Transaction instruments, such as presentation and transaction cards, and the use of such instruments to access, e.g., financial or stored value accounts is well known. Examples of such presentation or transactions cards include credit cards, debit cards (including check cards), ATM cards, phone cards, stored value cards, and the like. Presentation and transaction cards are also known to provide advertising, display, or informational items.
When used in financial or transactional matters, such instruments typically contain an account number in some form or another that permits the card holder to gain access to their account, such as when making a purchase. One common way to store the account information is through the use of a magnetic stripe that extends lengthwise along the card. To read the card, a point of sale device, such as the one described in U.S. application Ser. No. 10/116,689, filed Apr. 3, 2002, incorporated herein by reference, may be used. The account identifier that is read from the card may then be electronically transmitted to a processing system in order to complete the transaction. Another way to store the account information is by using a bar code that is read using a bar code reader. Other forms of storage devices include smart chips, RFID tags, MICR lines, and the like.
In particular to capitalize upon online commerce, while reducing the risk of fraud, new methods of payment authentication have been devised. There are address verification services that check the address provided against the billing address with the credit card company. Modern credit cards also have a card verification value (CVV) code imprinted on the back or front of the credit card that is not part of the credit card number (VISA™ refers to the code as CVV2, MasterCard™ calls it CVC2, and American Express™ calls it CID). Authenticating that the buyer has the proper CVV code tends to show the buyer physically has the card. Similarly, some authenticate the customer service number on the credit card. The use of user selected or card issuer selected personal identification numbers (PINs) to authenticate users is also common. However, compromise of PINs and/or loss of physical cards still result in significant identify theft and fraud.